Making boards work with 4 changes
Making boards work with 4 changes is essential to making boards effective
Selecting the right people. In short, companies keep appointing directors who aren’t independent thinkers and whose experience is too general
Spending quality time on strategy. Most governance experts would agree that public-company directors need to put in more days on the job and devote more time to understanding and shaping strategy.
Engaging with long-term investors. While boards may be guilty of pushing executives to maximize short-term results, we have no doubt where that pressure really originates: financial markets. That’s why it’s essential to persuade institutional investors, whose ownership position makes them the cornerstone of our capitalist system, to be a counterforce.
Paying directors more. Good capitalists believe in incentives. There is a growing consensus that directors should sit on fewer boards and get paid more. We fully agree, but the even more important issue is to structure that pay toward longer-term rewards. To get directors really thinking and behaving like owners, companies should ask them to put a greater portion of their net worth on the table.
Is your board of directors ineffective? More strategy less compliance and independent diverse dedicated people on board
Toward a value-creating board, more strategy less compliance
MALTAway is your board governance partner, furthermore having a NED with international experience in the BOARD, reinforce widely the diversity, independence and compliance requirements for a better Corporate Governance, Leadership and Business results
Even here in Malta and from Malta, this issue arises with relevant importance and validity, partly because of the high number of foreign companies present in every high-intensity Foreign Investments jurisdiction, in order to be compliant with international standards for tax purposes (see the case of dummy company and tax inversion), must have a board of directors with directors and NON EXECUTIVE DIRECTOR, residents in the jurisdiction where the company is domiciled.
All the above mentioned, is supporting and providing clear and convincing evidence that the foreign company is effectively managed from that place and with an adequate SUBSTANCE accordingly